Catherwood LibraryILR School

Last week, 13 U.S. Representatives sent a letter to the National Labor Relations Board, citing concerns over how the agency determines if two businesses are jointly liable for labor violations. The agency's new standard was imposed after the 2015 Browning-Ferris Industries ruling. Previously, employers were liable only for violations regarding direct employees; however, the ruling established a precedent that could hold employers jointly liable for violations committed by independent contractors it hires. This policy could place financial pressure on franchisors, who may have to close stores, limit franchising opportunities, or increase entry costs.